Category: People

Latin America’s two biggest exchanges – the Bovespa and the BM&F – are not discussing a merger, according to Bovespa CEO Gilberto Mifano. “There are no plans or proposals for anything yet,” Mifano tells LatinFinance, adding that the two sides have not held any talks recently. Bovespa and BM&F were recently rumored to be considering joining forces in the wake of successful IPOs. Prior to both exchanges’ demutualization, talk of a merger was also circulating, but the two ended up choosing to pursue shareholder restructurings and IPOs independently, says Mifano. If set up properly, a union between the two could make sense, notes Mifano, pointing to cases such as the Deutsche Bourse and exchanges in Hong Kong, Australia and Singapore, which integrated their various platforms successfully. The Bovespa went public October 24 via Goldman and Credit Suisse. The BM&F priced its offering November 28 via Morgan Stanley, Bradesco, JPMorgan, Merrill Lynch, Itau BBA, Deutsche Bank and Citi.

Brazilian mining powerhouse CVRD has changed its name to Vale as part of what it calls a “new brand and new communications positioning.” Donning a white hard hat, CEO Roger Agnelli made the announcement Thursday to about 500 managers from around his expanding empire. They were gathered in Rio auditorium and entertained by an enthusiastic drum-banging, singing and dancing troupe. The new logo – a warped green and yellow ice cream cone – is designed to bring the iron ore producer “closer to people,” says the firm. The new positioning and brand “highlight the fact that Vale produces essential ingredients for daily life, supplying, with its iron ore production, the raw material for several products like computers, watches or stoves,” adds the entity formerly known as CVRD. “With its new visual identity the company aims to consolidate its image as a Brazilian company with global action, highlighting its distinctive position in the international landscape,” the firm’s PR machine gushes. Bankers hoping for business from the frequent issuer are advised to abolish immediately the following from their lexicon: “Companhia Vale do Rio Doce,” “Rio Doce,” and the acronym CVRD.

Guatemala’s G&T Continental has categorically denied that it is being acquired, in response to rumors of a takeover. “Grupo Financiero G&T Continental is not for sale,” says the bank’s CEO, Flavio Montenegro. “It will be maintained as the bank of preference for Guatemalans, the leading entity in Guatemala and the most important in Central America, thanks to the support and trust of its clients,” he adds. HSBC is understood by Guatemala City-based bankers to be working on an acquisition of the financial institution, amid ongoing interest in the sector from foreign banks. “They’re doing due diligence,” says a banker. However, G&T rejects talk of an offer from HSBC as “totally false.”

Brazil’s GOL Linhas Aereas has received approaches from private equity groups interested in a 30% percent stake, according to wire reports. CEO Constantino de Oliveira told a press conference in London that the approaches are “very preliminary” and adds that Brazil’s largest airline is not actively seeking investment. GOL said in September that it is considering going private or initiating a share repurchase program. And on October 5 it forecast 2007 per share profit would be almost 50% less than earlier predictions, citing a range of BRL1.60-BRL2.10 a share, down from BRL3.00-BRL3.50.

Walter Bayly has been appointed CEO of Banco de Credito del Peru (BCP), effective April 1 2008, to replace veteran banker Raimundo Morales. “It’ll be a tough act to follow,” Bayly tells LatinFinance. “He has a strong leadership within the bank and in Peru,” he adds. Bayly, currently CFO, has been part of the BCP management team for more than 10 years. Alvaro Correa, head of the offshore operation, will take on his role. Gianfranco Ferrari, head of the Bolivian operation, has been appointed central manager of retail banking, while Diego Cavero will become general manager for Bolivia. To support the transition, Jose Luis Gagliardi will advise the CEO. Morales steps down after 17 years in the position and 27 years at BCP. “He will remain closely linked to [BCP holdco] Credicorp,” says Bayly. The exact role Morales, 61, will have at the bank is unclear, but a board seat and an honorary title is a likely outcome. Carlos Muñoz, deputy CEO, will also retire in March 2008. BCP reported record results for the end of September, including PES717.6m net profit and an ROE of 33.5%. “These results compare favorably with profits of PES498.5m, and an ROE of 25.4% for the same period last year,” says the bank. Bayly says he does not anticipate any strategic changes at BCP.

Carlyle has tapped Fernando Borges, CEO of AIG Capital Investments do Brasil, to spearhead its new Brazilian LBO business, a senior person close to the initiative tells LatinFinance. Earlier this year Borges led AIG’s effort to acquire Providencia Industria e Comercio, a Brazilian textile manufacturer for $432m. Three other investors, including Banco Espirito Santo and the Constantino family, which controls Gol Linhas Aereas, also participated in the deal. Carlyle has a buyout group in Mexico and real estate business in both Mexico and Brazil, the latter headed by Eduardo Machado. To date, LBOs in Brazil have been hampered by elevated interest rates and a reluctance from local executives to add leverage. Some domestically run shops, including GP Investments, have begun using bank debt to acquire assets this past year, though leverage ratios are not seen rising past four or five times. Ana Vigon, managing director and head of LatAm private equity of AIG Capital Partners in New York, is expected to replace Borges.

Senior management from both RBC and RBTT will be integrated following the acquisition. Suresh Sookoo, RBTT Group CEO and Ross McDonald, RBC’s current head of Caribbean banking, will share responsibility for the transition. Sookoo will become CEO of RBC’s Caribbean retail banking operations following the successful integration of the two operations. The transaction marks RBC’s return to Trinidad and Tobago, where it had maintained operations from 1902 to 1987. RBC used Osler and Pollonais, Blanc as legal counsel and internal M&A resources for the deal.